Rental

Although the prices of holiday homes in the mountains have increased, there are solutions. One possibility to achieve the holiday home dream is to invest in an apartment that is then rent it out during periods when you are not using it. Renting a holiday home in the mountains in Norway has increased tremendously in popularity in recent years and Hemsedal is one of the most attractive and professional destinations for renting. If you want to buy a holiday home, it may therefore be quite possible to get this financed through renting. Many people prefer to rent out by the week, and prices vary in relation to standard and size, from around NOK 15,000 a week to rental prices in high season up to NOK 30,000 - 50,000 a week.

• Say you buy a holiday apartment for about NOK 3 million. For simplicity's sake, we assume that you will borrow the entire amount, with additional collateral in your
  home. With a long-term loan interest rate of three per cent, the interest cost will be approximately NOK 90,000 before tax. In addition, you have expenses for maintenance, electricity, property tax, insurance and more. Let's assume that this adds up to around NOK 50,000.
• In this example, you have to rent out the apartment for about NOK 140,000 a year to cover all costs. Then we have taken into account both tax deductions on loans and tax on the rental income, but not any instalments on the loan. If you manage to achieve a rental income of NOK 15,000 a week, it is enough to rent out for ten weeks.
• Below you can see a calculation of rental income of apartments in Tuv Hemsedal, based on experiences in Hemsedal. The rental income is turnover before costs
  related to letting.
• An apartment at Tuv Hemsedal such as Skogshorn #134 with 1 bedroom and 1 sleeping alcove, BRA 53 sqm, a total of 4 – 6 beds, represents approx. NOK 250 –
  300,000 in rental income per year, depending on how much you use the apartment yourself.
• You can rent out your apartment yourself through Booking.com, Airbnb.com and similar platforms, or add your apartment to Tuv Hemsedal Utleieservice's solution,
  which handles everything with rental for you from A – Z, completely seamlessly and without any stress.
• A nice bonus on top is that the value of holiday homes in Hemsedal has historically doubled every ten years for the past 30 years, with approx. 5-8% increase in value per year.